Executive summary
- The City of Windhoek approved a total of 144 building plans valued at N$ 140,436,252 in April 2023. See figure 1
- Out of 144 building plans approved, 93 were additions plans, 29 were house plans, 12 were wall plans, 9 were commercial plans, and 1 pool plan
- The number of approved building plans declined by 26% when compared to those approved in March 2023. See figure 2
- During the month under review, a total number of 54 buildings were completed for Windhoek at the value of N$ 65,615,744
- Total buildings completed declined by 31% when compared to the buildings completed in March 2023
Analysis
- On an annual basis, the number of building plans approved for Windhoek declined by 23%. This could be attributed to a decline in construction spending as a result of high inflation and interest rates
- For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 41 plans (26 addition plans, 6 house plans, 5 commercial plans, 3 wall plans, and 1 pool plan) valued at N$ 33,888,000
- Otjomuise and Katutura had the second-highest number of building plans approved with a total of 12 plans valued at N$ 14,130,003 and N$ 5,024,312, respectively
Outlook
We expect construction activity to maintain modest growth in the short to medium term, owing to rising interest rates, which raises the cost of borrowing for new construction projects.
Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (April 2022 – April 2023)
Source: CoW & HEI RESEARCH
Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (April 2022 – April 2023)
Source: CoW & HEI RESEARCH